WASHINGTON, March 1 /PRNewswire/ -- Millions of seniors and disabled
Americans in Medicare could face benefits cuts or risk losing their current
coverage entirely should Congress enact changes to the program based on the
conclusions of the Medicare Payment Advisory Commission (MedPAC) report
released today. The report examines and compares the costs of covering
beneficiaries under Medicare fee-for-service and the Medicare Advantage
program.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO)
Karen Ignagni, President and CEO of America's Health Insurance Plans
(AHIP), said the MedPAC report underestimates the costs associated with
covering seniors through basic Medicare fee-for-service while not
accounting for the better benefits and lower out-of-pocket costs available
to seniors who choose Medicare health plans.
"Medicare health plans are improving the health and well-being of more
than eight million beneficiaries," Ignagni said. "With a nearly 60 percent
increase in Medicare Advantage enrollment since 2003, Congress shouldn't
take away benefits for seniors who depend on this program."
The MedPAC analysis underestimates Medicare fee-for-service costs by
not including key components such as administrative costs and graduate
medical education payments that Medicare provides to teaching hospitals. In
addition, the Centers for Medicare & Medicaid Services (CMS) suggests that
comparisons of Medicare Advantage rates to Medicare fee-for-service
expenditures "should be undertaken cautiously, and the results should be
interpreted with a proper understanding of certain limitations." Ignagni
said that comparisons, such as those included in the MedPAC report,
therefore, do not account for the full value of the array of services
provided by Medicare health plans.
This extra value is relied upon by Medicare Advantage beneficiaries to
help them reduce out-of-pocket costs and improve access to important health
care services. Medicare health plans offer vision, hearing, dental,
fitness, mental health, and alternative health benefits such as podiatry
and chiropractic services that are not offered under the basic Medicare
program. Medicare health plans also offer zero-premium comprehensive drug
coverage, wellness programs, and disease management and care coordination
programs that also are not offered under the basic Medicare program.
CMS has reported that Medicare Advantage enrollees are saving an
average of $86 per month ($1,032 per year) through improved benefits and
lower out-of-pocket costs. This will translate into more than $8 billion in
annual savings.
CMS also found that Medicare Advantage plans are returning an
additional $26 per month, or approximately $2.1 billion in 2006, to the
government in savings by bidding below benchmarks.
Ignagni cautioned that low-income and minority Medicare beneficiaries
who rely on the program could face higher cost-sharing which may force them
to forgo preventive screenings and other needed medical treatments. Data
released last week by AHIP found that forty-nine percent of Medicare
Advantage enrollees in 2004 had incomes of less than $20,000, and that 68
percent of minority Medicare Advantage enrollees had incomes below $20,000.
To view the Medicare Advantage data analysis, visit
http://www.ahipresearch.org.
America's Health Insurance Plans -- Providing Health Benefits to More
Than 200 Million Americans
SOURCE America's Health Insurance Plans
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Related links:
http://www.ahip.org
http://www.ahipresearch.org/
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CONTACT:
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